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The supply chain must support the operations

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The supply chain must support the operations management strategy. For a firm using thelow-cost strategy, supplier selection should be based primarily on cost.When using theresponse strategy, the selection criteria are capacity, speed, and flexibility.Fordifferentiation strategy, the supplier is selected based on product development skills.(Thesupply chain’s strategic importance, moderate)107.What are the three versions of online catalogs?The three versions of online catalogues are: (1) catalogs provided by vendors, (2) catalogsprovided by intermediaries, and (3) exchanges provided by buyers.(E-procurement,moderate) {AACSB: Use of IT}108.What are the special requirements of supply chain systems in global environments?Supply chains in a global environment must be flexible, so that the firm can react to suddenchanges that might occur in parts availability or currency rates. They must be able to uselatest information technology for scheduling and managing shipments of parts and products.And they must be staffed with specialists to handle duties, customs, and political issues inother countries. (The supply chain’s strategic importance, moderate) {AACSB: Multicultureand Diversity}109.Identify the reasons formakingin the make-or-buy decision.The reasons for making in the make-or-buy decision include: (1) maintain core competence,(2) lower production cost, (3) unsuitable suppliers, (4) assure adequate supply, (5) utilizesurplus labor or facilities and make a marginal contribution, (6) obtain desired quality, (7)remove supplier collusion, (8) obtain unique item that would entail a prohibitive commitmentfor a supplier, (9) protect personnel from a layoff, (10) protect proprietary design or quality,and (11) increase or maintain size of the company (management preference)(Supply chaineconomics, moderate)
296110.Identify the reasons forbuyingin the make-or-buy decision.The reasons for buying in the make-or-buy decision include freeing management to focus onprimary business; lower acquisition cost; preserve supplier commitment; obtain technical ormanagerial ability; inadequate capacity; reduce inventory costs; ensure alternative sources ofsupply; inadequate managerial or technical resources; reciprocity; and item is protected bypatent or trade secret. (Supply chain economics, moderate)111.How are outsourcing and vertical integration related? Can a single firm successfully do both?Outsourcing transfers what were traditional internal activities to outside vendors. It is a wayof increasing specialization which allows the firm to focus on its core strengths, and not try todo all possible tasks. Vertical integration is much the opposite, decreasing a firm'sspecialization so that it can perform additional functions along its supply chain. Verticalintegration has become increasingly difficult in the face of increasing specialization. It seemsunlikely that firms which make significant use of outsourcing would do much verticalintegration, but it is possible that a firm's set of competitive advantages would supportoutsourcing in some functions and vertical integration in others. (Managing the supply chain,difficult) {AACSB: Reflective Thinking}112.

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